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The Australian dollar fell sharply recently against the US dollar, and one of the main reasons for the same was the sifter than expected Chinese trade balance report. However, the AUDUSD pair managed to find buyers around the 0.7550 levels, and currently making an attempt to correct higher. We need to see how long the pair can stay on the top and hold the downside. There was a release lined up in Australia, as the NAB´s Business Conditions pointing at trading, profitability and employment conditions in Australia was released by the National Australia Bank. It registered an increase from the last reading of 2 to 6 in March 2015.
There is a monster bearish trend line formed on the hourly chart of the AUDUSD pair, which might act as a pivot area for the pair. If the pair heads higher, then it might test the highlighted trend line. There is a critical point to note i.e. the 50% fib retracement level of the last leg from the 0.7694 high to 0.7550 low is also around the same trend line. So, one could say that the 0.7625 level is a major barrier for the AUDUSD pair. Moreover, the 200 hourly simple moving average is also above the trend line waiting to act as a hurdle for the pair. So, the chances of AUDUSD moving lower are more compared to a break higher.
If the AUDUSD pair moves lower from the current levels, then initial support is around 0.7580, followed by the last low of 0.7550.
Overall, one might consider selling rallies in the AUDUSD pair as long as it is below the highlighted trend line.